The best buys in Knysna are in central town where owners appeared to be hardest hit by the recession.
So says Alan Evans, principal of Seeff Properties Knysna, who adds that alternatively, good areas in which to invest at the moment were security estates such as Thesen Islands, Pezula Estate, Simola Estate and Belvidere. "These areas are not only secure but have good views and property price increases will be achieved in the longer term," he pointed out.
Recently, he said, there has been a noticeable return of cash buyers to the market. These investors were taking full advantage of good deals and purchasing properties that they could renovate, rent out or retain in order to sell once the market has turned.
"There is a big demand for rental property, although returns are not great. However, many investors are happy to receive just five percent, knowing that capital growth will come in the next couple of years."
He added that even though the recession was biting, the decline in prices in Knysna had not been as severe as in other areas. Property prices in the town start at about R400k for a one-bedroom flat and then rise to above R30m for luxury homes in good areas.
Evans said Knysna remained a popular retirement area due to the relatively crime-free environment, natural beauty and magnificent climate.
"We still have a number of people who spend half the year here and the other half in the Northern Hemisphere. However, our major sales in the last six months have been to Johannesburg, Cape Town or Durban business executives."
"It has recently also become popular with younger families who wish to have a secure lifestyle. The growth in the number of local schools has followed this trend. We do have many commuters. However, with the electronic age, many executives can run their businesses from home with less frequent travel to the large cities. When this is necessary, George airport is an hour's drive away and flights to both Johannesburg and Cape Town are fairly frequent."
Readers' Comments
Have a comment about this article? Email us now..
Property News
Click here for more property news articles.
Need a blog?
Start your own blog with a free blog from 24.com.
